Bloomberg News

Hungarian Economic Sentiment Rises to 10-Month High in February

By Edith Balazs
February 24, 2013

Hungary’s economic-sentiment index
improved to a 10-month high in February as consumers became less
pessimistic.

The index rose to minus 19.5 from minus 19.6 in January,
the GKI research institute in Budapest said in an e-mailed
statement. The consumer-confidence gauge rose to minus 40.9, the
highest since August 2011, from minus 43.4 in January, while the
business-confidence index fell to minus 12 from minus 11.3.

Hungary’s economy is in its second recession in four years
after the euro-area crisis cut export demand, while the
government raised corporate taxes and levied the highest bank
tax in Europe, which curbed lending and investment. Gross
domestic product will fall 0.1 percent this year after shrinking
1.7 percent in 2012, the European Commission said Feb. 22.

GKI’s indexes are calculated as a balance of positive and
negative answers to questions about the outlook for the economy.

To contact the reporter on this story:
Edith Balazs in Budapest at
ebalazs1@bloomberg.net

To contact the editor responsible for this story:
James M. Gomez at
jagomez@bloomberg.net